HOUSING PROBLEM

Hawke's Bay Tribune, Volume XXVI, Issue 121, 6 May 1936, Page 6

HOUSING PROBLEM

Tasmanian Government Scheme HELPING WORKERS lHy Telegraph—Press Association.! WELLINGTON, Mav 6. In view of the announcement regarding housing made by the Rt. Hon, M. J. Savage a short time ago, housing activities elsewhere are of interest, and the Minister of Agriculture and Forestry in the Tasmanian Government, the Hon. R. Cosgrove, who arrived by the Wauganella to-day, was able to give an outline of what his Government is doing. There was a housing shortage in Tasmania, Mr Cosgrove said, and the Government realised that the workers could not build homes for themselves without assistance. A housing scheme had accordingly been formulated and was working in a most satisfactory manner. The Government advanced 90 per cent, of the value of a home and the worker was expected to find the other ten per cent. Repayments were spread over 42 years for stone and brick houses and over 30 years for hardwood buildings. Interest was charged at 4J per cent and 1 per cent, was added as repayment. In addition to interest and repayment payments made by a worker, any home owner could pay £5 or multiples of £5 into a fund administered by the Government. These amounts were not regarded as repayments of principal, but as savings against unemployment or other future difficulties. The Government paid 5 per cent interest on all moneys paid in and the depositor could withdraw what he had paid in at any time. Although there was no restriction on withdrawals, the main object of the fund, to make interest and sinking fund payments during difficult times, was observed in almost every instance. The Government- did not allow workers to build homes they could not very well pay for out of their earnings. A limit was placed on the amount any w'orker could borrow, and it was graduated according to the earnings of the borrower. The maximum amount that could be borrowed for one homo was £l2OO, but the average worker was limited to £B5O for building and land. Sections in the suburbs of Hobart co ilrt bo bought for £2 a foot, so a section with a 45-foot frontage v as valued at £9O. During the last financial year £50,000 had been spent on housing through the Government, ..nd it was estimated that £lOO,OOO would be spent during the present year.